Broadcom Pitches Qualcomm Board Overhaul As It Pursues Deal
By Allison Prang
After a failed attempt to buy Qualcomm Inc., Broadcom Ltd. unveiled Monday the names of 11 new directors it wants appointed to Qualcomm's board, while emphasizing it would rather talk to the company about a deal.
Broadcom in November proposed a cash and stock acquisition of Qualcomm worth $105 billion at the time, but Qualcomm's board turned down the offer given concerns of regulatory uncertainty and saying the proposed deal undervalued the company.
"Although we are taking this step, it remains our strong preference to engage in a constructive dialogue with Qualcomm," Broadcom Chief Executive Hock Tan said in prepared remarks. "We believe Qualcomm stockholders would be better served by new independent, highly qualified nominees who are committed to maximizing value and acting in the best interests of Qualcomm stockholders."
Broadcom said in a statement Monday it has told Qualcomm of its plans to make the nominations.
In addition to the 11 directors proposed, Broadcom recommended reappointing three current directors -- Mark D. McLaughlin, Anthony J. "Tony" Vinciquerra and Jeffrey W. Henderson.
Qualcomm's annual meeting will take place March 6.
Shares in Broadcom rose 0.9% in premarket trading, while Qualcomm shares fell 0.3%.
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December 04, 2017 08:16 ET (13:16 GMT)Copyright (c) 2017 Dow Jones & Company, Inc.